All Forum Posts by: Lauryn Meadows

Yes. There is a silver lining. Unfortunately this market doesn’t appreciate that quickly, but I possibly may do that in 2-3 years depending on the market, debt pay down and the interest rates at that time. 

It's been a learning experience, and I think this is the push I needed to start looking at properties that the value comes from the NOI.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $150,000
Cash invested: $182,000

BRRRR SFH and fourplex, five total doors.

Purchase price: $150,000
Rehab/ Holding Costs: $182,000
ARV: $353,000
Capital left in deal: $49,600

Cash Flow: $1,300/ month

What made you interested in investing in this type of deal?

Our company focuses on the BRRRR strategy so we can continue to recycle our cash to scale.

How did you find this deal and how did you negotiate it?

My mom was shopping an estate sale when the owner told her he was planning on selling the property. She told me and the rest is history!

How did you finance this deal?

Our private money investor had a total loss on a house fire a couple of years prior. The insurance company was about to close their claim- without giving out the funds because the insured couldn't find anything to purchase to meet the insurance company's requirements to recieve funds. We new about their situation and thought this could be a win for everyone. We also had $120,000 of our own capital in the deal.

How did you add value to the deal?

We put $182,000 in the four plex and SFH. The exterior was in great shape but we had to do a total redo on the interior of most of the units.

What was the outcome?

Our ARV came out lower than I had hopped- actually it came out exactly where I had ran my numbers at, but with unexpected permitting requirements and increased material costs the project was about $70,000 over budget for the rehab.

Lessons learned? Challenges?

BRRRR is my favorite strategy because I'm still getting roughly a 31% cash on cash return of the $50,000 of our own capital we had in the deal. It definitely wasn't the outcome I had hoped for, but it was a learning experience. In this market small multi families are not traded frequently meaning they do not have comps for these properties. I could have still cash flowed great at the higher value I had hoped for, but the comps could not support it. I plan to focus on true 5+ commercial now.

@Kendall Staggs as of now, we are having a meetup November 19th 7pm at the Winchester in Ashland. Are you on our Facebook group?

https://www.facebook.com/groups/193503334672447/?ref=share

Meet with local investors in the tri-state area. 

@Cody Barna similar! We bought a collection of 8 properties and did something similar. We refinanced them and got 100% of our investment back. We used a lot of creative finance strategies in it. A breakdown of that deal is on my profile as well. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Ironton.

Purchase price: $10,000
Cash invested: $60,000

BRRRR property! We bought this duplex for $10,000, put $60,000 into the renovation. We cashed out refinanced at $89,000 and now we have a cash flowing property with gross rent at $1475/ month.

What made you interested in investing in this type of deal?

Low barrier to entry, >100% ROI, cash flow and in a nice neighborhood.

How did you find this deal and how did you negotiate it?

Facebook "we buy houses" advertisement. The seller wanted to sell to us because we have a local reputation of bringing dilapidated properties back to life.

How did you finance this deal?

Personal cash on the front end for purchase and renovation, refinanced with a local portfolio lender.

How did you add value to the deal?

It was empty. $60,000 renovation. Then placed tenants to make a cash flowing property.

What was the outcome?

We added a cash flowing duplex to our portfolio, and cashed out on some of our forced equity.

Lessons learned? Challenges?

This was a fairly seamless deal.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Citizens Deposit Bank and Trust in Ironton, OH.

@David Hulit thank you for the info!

@David Hulit are these loans being forgiven? I’ve heard serval times that there is a “loan” that basically turns into a grant. Is that this loan?

April 1st is tomorrow, so I’m not 100% sure what my economic vacancy rate will be. What should I put for loss of income?

B- Buy

R- Rehab

R- Rent

R- Refinance

R- Repeat

BRRRR investing is very popular real estate investing strategy. Join us as we discuss the opportunities, and challenges of BRRRR investing.

Value- add (BRRRR investing) isn't only a great wealth builder, it's a powerful tool we can use to transform our communities.

If your interested in growing wealth, passive income AND improving your community this is the event for you!

February’s event will be held Thursday, February 27th at 7pm at the new Mill Cafe & Bakery in Ashland, KY.

In addition to networking and discussing the power of value- add investing, you’ll be treated to a “soft opening” of the Mill Cafe & Bakery!

Join us for the Tri-State (KY, OH, WV) real estate investor monthly meetup. January’s meetup we will have the Lawrence County, OH land bank joining us to discuss development opportunities.